IAEA Nuclear Energy Series
Basic Principles
Objectives
Guides
Technical Reports
Restarting Delayed Nuclear Power
Plant Projects
No. NP-T-3.4
IAEA NUCLEAR ENERGY SERIES PUBLICATIONS
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IAEA NUCLEAR ENERGY SERIES No. NP-T-3.4
RESTARTING DELAYED
NUCLEAR POWER PLANT PROJECTS
AFGHANISTAN ALBANIA ALGERIA ANGOLA ARGENTINA ARMENIA AUSTRALIA AUSTRIA AZERBAIJAN BANGLADESH BELARUS BELGIUM BELIZE BENIN BOLIVIA
BOSNIA AND HERZEGOVINA BOTSWANA
BRAZIL BULGARIA BURKINA FASO CAMEROON CANADA
CENTRAL AFRICAN REPUBLIC
CHAD CHILE CHINA COLOMBIA COSTA RICA CÔTE D’IVOIRE CROATIA CUBA CYPRUS
CZECH REPUBLIC DEMOCRATIC REPUBLIC OF THE CONGO
DENMARK
DOMINICAN REPUBLIC ECUADOR
EGYPT
EL SALVADOR ERITREA ESTONIA ETHIOPIA FINLAND FRANCE GABON GEORGIA GERMANY GHANA
GREECE GUATEMALA HAITI
HOLY SEE HONDURAS HUNGARY ICELAND INDIA INDONESIA
IRAN, ISLAMIC REPUBLIC OF IRAQ
IRELAND ISRAEL ITALY JAMAICA JAPAN JORDAN KAZAKHSTAN KENYA
KOREA, REPUBLIC OF KUWAIT
KYRGYZSTAN LATVIA LEBANON LIBERIA
LIBYAN ARAB JAMAHIRIYA LIECHTENSTEIN
LITHUANIA LUXEMBOURG MADAGASCAR MALAWI MALAYSIA MALI MALTA
MARSHALL ISLANDS MAURITANIA
MAURITIUS MEXICO MONACO MONGOLIA MONTENEGRO MOROCCO MOZAMBIQUE MYANMAR NAMIBIA NETHERLANDS NEW ZEALAND NICARAGUA NIGER NIGERIA
NORWAY PAKISTAN PALAU PANAMA PARAGUAY PERU PHILIPPINES POLAND PORTUGAL QATAR
REPUBLIC OF MOLDOVA ROMANIA
RUSSIAN FEDERATION SAUDI ARABIA
SENEGAL SERBIA SEYCHELLES SIERRA LEONE SINGAPORE SLOVAKIA SLOVENIA SOUTH AFRICA SPAIN
SRI LANKA SUDAN SWEDEN SWITZERLAND
SYRIAN ARAB REPUBLIC TAJIKISTAN
THAILAND
THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA TUNISIA
TURKEY UGANDA UKRAINE
UNITED ARAB EMIRATES UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND UNITED REPUBLIC OF TANZANIA
UNITED STATES OF AMERICA URUGUAY
UZBEKISTAN VENEZUELA VIETNAM YEMEN ZAMBIA ZIMBABWE
The Agency’s Statute was approved on 23 October 1956 by the Conference on the Statute of the IAEA The following States are Members of the International Atomic Energy Agency:
NUCLEAR ENERGY SERIES
RESTARTING DELAYED
NUCLEAR POWER PLANT PROJECTS
INTERNATIONAL ATOMIC ENERGY AGENCY VIENNA 2008
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© IAEA, 2008
Printed by the IAEA in Austria February 2008
STI/PUB/1324 ISBN 978–92–0–101308–8
ISSN 1995–7807 IAEA Nuclear Energy Series
No. NP-T-3.4
The originating Section of this publication in the IAEA was:
Nuclear Power Engineering Section International Atomic Energy Agency
Wagramer Strasse 5 P.O. Box 100 A-1400 Vienna, Austria
FOREWORD
The management of nuclear power plant projects with delays of several years with respect to the original scheduled commercial operation date presents particular issues and problem areas beyond the normal management tasks needed for projects implemented within originally planned schedules.
During the years 1997–1998 the IAEA collected information and practical examples on necessary management actions to preserve the capability for resuming work and completing delayed nuclear power projects when conditions permit. The results were published in the IAEA-TECDOC-1110 entitled Management of Delayed Nuclear Power Plant Projects. As this publication was finalized, at the end of 1998, the available information at the IAEA PRIS (Power Reactor Information System) indicated that more than 40 nuclear power plant projects had delays of five or more years with respect to the originally scheduled operation dates.
The PRIS data, collected at the end of 2007, illustrates a trend toward restarting and completing projects that were once delayed. The data indicates that the number of delayed nuclear power projects has reduced to about 25. Some practical methodologies and successful experience from the restarted projects were reviewed, summarized and included in the present publication. The purpose is to address the specific management issues pertaining to a delayed nuclear power project in the period after the decision for restarting is adopted. This publication covers those management issues not considered within the normal processes described in other IAEA publications.
It is expected that the practical experience collected from delayed nuclear power projects that were successfully restarted, completed and brought to commercial operation, can provide useful assistance to the management of similar projects considering resumption of work in the future.
This publication was produced within the IAEA programme directed to increase the capability of Member States for strengthening national and regional nuclear power infrastructures.
The IAEA wishes to acknowledge the assistance provided by the persons involved as reviewers and as contributors of practical material. These persons are listed at the end of the publication. In particular, specific appreciation is given to J.E. Costa Mattos (Brazil), who served as chairperson during the review meetings and to I. Rotaru (Romania), who prepared the drafts. The IAEA officers responsible for this publication were N. Pieroni and K-S. Kang of the Division of Nuclear Power.
EDITORIAL NOTE
The use of particular designations of countries or territories does not imply any judgement by the publisher, the IAEA, as to the legal status of such countries or territories, of their authorities and institutions or of the delimitation of their boundaries.
The mention of names of specific companies or products (whether or not indicated as registered) does not imply any intention to infringe proprietary rights, nor should it be construed as an endorsement or recommendation on the part of the IAEA.
CONTENTS
1. INTRODUCTION ... 1
1.1. Background... 1
1.2. Objectives ... 1
1.3. Scope ... 1
1.4. Users ... 1
1.5. Structure... 2
1.6. How to use ... 3
2. KEY SPECIAL ASPECTS IN RESTARTING A DNPP... 3
3. PROJECT ORGANIZATION ... 4
3.1. Project management organization ... 4
3.1.1. Project management organization during DNPP interruption and preservation... 5
3.1.2. Project management organization during DNPP pre-project activities ... 6
3.1.3. Project management organization during DNPP project implementation ... 6
3.2. Description of the restarting process ... 7
3.3. Management system ... 9
3.4. IAEA technical support for DNPP ... 11
4. VERIFICATION OF BASIC CONDITIONS FOR DNPP WORK RESUMPTION .... 12
4.1. Technical conditions... 12
4.1.1. Evaluation and assessment of the existing conditions ... 12
4.1.2. Evaluation and assessment of the required work for the DNPP completion ... 13
4.2. Economic and financial conditions... 16
4.2.1. Project budget ... 16
4.2.2. Financial plan... 18
4.3. Human resources ... 19
4.4. Public information and consultation... 20
4.5. Establishment of overall strategies for DNPP completion ... 22
4.5.1. Contractual approach ... 22
4.5.2. Financing project completion ... 24
5. UPDATING TO THE REGULATORY REQUIREMENTS AND CURRENT LICENSING BASIS ... 25
5.1. Design changes and engineering upgrades definition and completion... 26
5.2. Licensing bases document ... 27
5.2.1. Safety analysis report... 27
5.2.2. Climate change analyses and support studies ... 28
5.2.3. Licensing schedule... 28
5.2.4. Emergency preparedness ... 29
6. COMMERCIAL ARRANGEMENTS ... 29
6.1. Commercial and financial contracts ... 29
6.2. DNPP project risks ... 31
7. PROJECT IMPLEMENTATION... 32
7.1. Project management ... 33
7.1.1. Planning and scheduling ... 34
7.1.2. Budget control... 35
7.2. Engineering... 36
7.3. Procurement... 38
7.4. Manufacturing of equipment and components ... 39
7.5. Construction and erection... 40
7.6. Commissioning... 42
7.7. Turnover to operation ... 44
7.8. Public information ... 45
REFERENCES... 47
ABBREVIATIONS... 49
ANNEX I: PROJECT RESUMPTION MANAGEMENT EXPERIENCE ATUCHA II NPP, ARGENTINA... 51
ANNEX II: DELAYED NUCLEAR POWER PLANT PROJECT RESUMPTION MANAGEMENT EXPERIENCE, ANGRA 2 AND 3 NPP, BRAZIL ... 68
ANNEX III: IMPLEMENTATION OF THE ACTIVITIES ON INTEGRATION OF THE ALREADY DELIVERED EQUIPMENT, BELENE NPP, BULGARIA... 80
ANNEX IV: DELAYED NUCLEAR POWER PLANT PROJECT MANAGEMENT EXPERIENCE: CERNAVODA 2 NPP, ROMANIA ... 90
ANNEX V: PROJECT RE-START MANAGEMENT EXPERIENCE MOCHOVCE UNIT 3 & 4 NPP, SLOVAK REPUBLIC... 112
ANNEX VI: IAEA ASSISTANCE ON MANAGEMENT OF DELAYED NUCLEAR POWER PROJECTS ... 137
CONTRIBUTORS TO DRAFTING AND REVIEW ... 141
1. INTRODUCTION 1.1. Background
The reason for this publication arose from recognition that delayed nuclear power plant projects (DNPPs) present specific issues for which the nuclear utilities need assistance and guidance based on successful practices. For the purpose of this publication, a DNPP is a nuclear power plant project that has not reached the operation stage several years after the originally scheduled date. This publication is a continuation of the IAEA programme carried on during 1997–1998 with the specific aim of providing assistance for the management of DNPPs. The IAEA-TECDOC-1110 Management of Delayed Nuclear Power Plant Projects published in 1999 [1] provided information and practical examples concerning necessary management actions to preserve and develop the capability to restart and complete these projects.
This publication offers guidance for the process of managing the restarting of a DNPP until turnover to operation. The guidance can be applied equally well to a country's first nuclear power plant (NPP) or a plant, which is a part of a larger national nuclear power programme.
Additional information is provided in the annexes. This information has been acquired from nuclear utilities around the world and represents practices successfully applied in the completion of DNPPs. Experience has shown that the practices described are effective and therefore suggested for adaptation and application.
This publication focus on the specificity of the DNPPs, taking into account that there are other IAEA publications geared towards the implementation and construction of new NPPs, which are mentioned as reference publications.
1.2. Objectives
The objectives of this publication are to:
⎯ Provide guidance on the specific aspects concerning the process of restarting and finalizing a DNPP
⎯ Assist management with the implementation of the particular policies and measures for DNPP restarting and finalization
⎯ Share the experiences, successful practices and methodologies of countries that decided to restart a DNPP.
1.3. Scope
This publication covers the management key aspects and subject areas for the preparation and execution of DNPP after the decision for restarting is adopted. In particular includes issues such as preparation of restarting and structuring of the project, detailed evaluation of the DNPP before restarting, structures and materials preservation, commercial and financial arrangements, licensing, and project implementation (construction, commissioning and turnover to operation). This publication does not address operation of DNPPs.
1.4. Users
This publication is intended for use by the senior managers and engineers of organizations involved in the DNPP completion including:
⎯
Nuclear utilities⎯
Project Management Team (PMT) organizations⎯
Supplier organizations for DNPP construction and commissioning services⎯
Technical support organizations⎯
Vendors and equipment suppliers.The publication also includes information which may be useful for decision makers and advisors from governmental organizations such as regulatory bodies, ministries and others.
1.5. Structure
This publication consists of seven main sections, including this Section 1, which is an introduction.
Section 2 presents the identified key aspects of DNPP in the process of restarting and managing until the completion.
Section 3 describes the project management organization during the different periods of DNPP restarting process. The role and functions of the existing DNPP core group after the decision for re-starting of the work for completion is also presented. The process of establishing a specific project management organization in the different stages of DNPP completion and the management system are also presented. The last part of Section 3 identifies the technical support that the IAEA offers to the Member States in the field of DNPP re-starting and completion management.
Section 4 outlines the main issues related to the verification of basic conditions for DNPP work resumption. This includes verification and assessment of the technical and economical conditions, including the project budget and financial plan. In addition to that, Section 4 contains recommendations of effective practices for human resources management and information for the public’s acceptance of the DNPP restarting. Finally, it outlines strategies for DNPP completion, mainly focused on the decisions related to the contractual approach and financing.
Section 5 presents the process of updating the DNPP to regulatory requirements and current licensing in a logical order along with the actions that need consideration for updating the DNPP for licensing and completion. The importance of the DNPP licensing schedule and of having a proper relationship with the regulatory body during the DNPP licensing process is also emphasized.
Section 6 outlines the practices and recommendations for the commercial and financial arrangements for DNPP project completion, as well as the specific risks associated with DNPP completion.
In the last Section 7, the specific activities of DNPP implementation are described, mainly in the area of project management, planning and scheduling, engineering, construction, erection, commissioning and turnover to operation.
The annexes present good practices and experiences of Member States which have already completed DNPPs or are in the process of DNPP completion at the time of issuing this publication (Argentina, Brazil, Bulgaria, Romania and Slovak Republic). These annexes
should be read in conjunction with the provisions of this publication, representing country cases which have been used as bases for the guidance and recommendations included here.
1.6. How to use
This publication should be used as guidance on how to proceed with the completion of a DNPP that was interrupted during any particular project phase. This publication is not prescriptive and should be considered only as guidance.
The guide is not meant to be all-inclusive and should be utilized with due consideration given to the existing local experience and specific economical and financial conditions of each country. The suggested methods and good practices given in this publication should be adjusted by each user to fit the needs and capabilities of the country as well as the particular circumstances of the DNPP project. However, it must be clearly understood that they are only suggestions and are not to be interpreted as regulatory requirements. The implementation of these suggestions should be consistent with the organization culture and the operating environment of the project.
Other IAEA publications with additional information related to the issues covered in this publication are listed in the references.
2. KEY SPECIAL ASPECTS IN RESTARTING A DNPP
The following are relevant items specific to managing the process of restarting a DNPP until the completion:
Management aspects
⎯ Establishment of a project management organization during the different periods of DNPP restarting process, including the dedicated Project Management Team and the appropriate management system, based on the existing “core group” which managed the DNPP during the interruption and preservation period.
⎯ Project management configuration based on the specific physical status of DNPP at restarting.
⎯ Human resources management, including recovery of former human resources and knowledge about DNPP.
⎯ Knowledge management and configuration management programme development.
Technical aspects
⎯ Detailed verification of basic conditions for DNPP resumption (physical status, existing documentation, suspended commercial contracts, preservation of existing equipment, materials and spare parts, etc.) and assessment of the technical conditions.
⎯ Updating of specific analyses or studies related to DNPP environmental impact, required data for the meteorological, seismical and hydraulical situation including the climate change influences.
⎯ Updating the technical specifications and procurement packages.
⎯ Establishment of prioritization application strategy for preservaion and maintenance and the detailed preservation verifications.
⎯ Additional works during DNPP project completion due to the delay period related with:
•
Missing material traceability•
Pending factory non-conformance reports•
Corrective and compensatory measures programme implementation, additional repairs, equipment refurbishment, rehabilitation and mandatory design changes•
Special measures for systems flushing, hydrostatic test programmes and subsequent in-service-inspection programmes, due to long time of interruption of the DNPP activities•
Requirements for specific skills and qualification of the site subcontractors for equipment and components refurbishment and replacement programmes•
Identification of components obsolescence and potential suppliers/change of suppliers•
Combination of DNPP re-starting process with application of plant life extension and operational feedback from NPPs with the same type of reactor, based on existing (old) equipment⎯ Acceptance criteria for turnover of DNPP to operation with some acceptable exceptions, due to the long time of project finalization.
Regulatory aspects
⎯ Updating licensing documents based on the assessment of the current standards and licensing requirements, including the definition of the mandatory design changes and revision of the technical support documentation for licensing (mainly the Basic Design, Preliminary Safety Analysis Report and Environement Analysis Report).
Economical aspects
⎯ Economical conditions for completion, including budget, financial plan and reassessment of the original suppliers for goods and services.
⎯ Specific risks analyses associated with establishment of the strategy for DNPP completion, including selection of contractual approach (turn-key, multi-packages, etc.).
The above mentioned key aspects are specific to the DNPP completion process and are normally not found in a NPP project implemented according to the original schedule.
3. PROJECT ORGANIZATION 3.1. Project management organization
The project management organization, as for any large project, is essential for the success of restarting the DNPP in terms of quality, cost and schedule. This activity starts with the definition of the project as a unique system to be produced with certain inputs, constraints and goals and ends when the complete functioning system is turned over to another organizational entity that should be in charge of operation and maintenance of the completed project. The typical role and the main functions of the NPP project management organization are described in the Reference [2].
The DNPP project management organization and its supporting organizations, in the different periods of the DNPP project (interruption and preservation, pre-project activities and project implementation) are the key resources for the success of the project completion. Completion of each DNPP has particular issues, which determine the configuration of the project
management organization in the different periods. The specific project management organization is also dependent on the DNPP status at the moment of restarting.
The project management organizations for each period of the DNPP completion are shown in Figure 3.1.
DNPP period PRESERVATION PRE-PROJECT PROJECT IMPLEMENTATION
Project management organizations
CORE GROUP CORE GROUP and
UTILITY DEPARTMENTS
- UTILITY
- MAIN CONTRACTOR - PROJECT MANAGEMENT
TEAM
FIG. 3.1 Project management organizations for DNPP
3.1.1. Project management organization during DNPP interruption and preservation
The IAEA publication Reference [1] recommended that, during the interruption and preservation period of a DNPP the nuclear utilities should maintain a core group, to play the role of the project management organization during this DNPP period. The core group is made up of expert technical and administrative staff dedicated to all DNPP activities that are needed to maintain project assets and to enable project resumption. The core group acts as a small/reduced project management organization and has the main responsibility for preserving the following DNPP resources:
⎯ Assets, equipment and facilities,
⎯ Documentation,
⎯ Contracts and warranties,
⎯ Personnel.
The core group has also responsibilities for the preparation of all documentation and information necessary for the decision process leading to restarting and completion of the DNPP. Usually, the government makes that decision with inputs from various concerned groups, including the management of the utility and the plant. In this process, known as
“Project decision-making”, the core group is responsible for the preparation of the required information for the final decision about the future of DNPP. This process is described in detail in Reference [1]. If the DNPP has been properly managed and adequately supported, much of the required information should be readily available, but even so, the preparation of a suitable submission requires considerable effort and time. The most important document issued by the DNPP owner is the feasibility study, prepared under coordination of the core group. The feasibility study is primarily intended to provide the relevant authorities with all the necessary detailed information needed to decide on the implementation of the project. It is also needed in the negotiations for financing of the project, as all financing institutions usually request it.
Decision restarting DNPP
Completion contract signed
3.1.2. Project management organization during DNPP pre-project activities
The overall responsibility for ensuring the fulfillment of the specific DNPP requirements for this period is placed on the utility and the project management activities should increase once the decision to restart the DNPP is made.
After the decision of the restarting the DNPP is made, the main task of the utility, to be performed using the dedicated project management organization, is to prepare the future mandatory actions for the project implementation. The existing DNPP core group should manage these activities with support from certain groups of the utility head office departments. The dimension and scope of this project management organization dedicated for this pre-project activity largely depends on the degree to which the project has advanced, and the detailed action plans established by the DNPP utility during this important period.
In the period of pre-project activities, the DNPP project management organization should require more involvement from the utility’s head office departments because of the specific activities that involve interacting with national authorities such as the ministry of environment, regulatory bodies and also with the public opinion. The site activities required in this stage, which do not involve DNPP progress work, can be managed by the enlarged DNPP core group and may be based on short term contractual relations with local erection and services organizations.
The specific procedures, which describe the interaction of the DNPP project management organization with decision makers, regulatory bodies, vendors and contractors for goods and services, should be developed. In this period decisions for the future of the DNPP are adopted, especially those concerning the contractual approach and financial plan, which require the specific approval of the DNPP utility shareholders, whether that is the state, represented by the specific ministers — economy, energy, public finance — or the potential private investors.
This period determines the future configuration of the DNPP project management organization, which is imposed by the contractual approach adopted.
The DNPP project management organization during the pre-project period contains typically the following departments: engineering, construction, safety and licensing, quality management, training, finance, commercial, legal assistance, administration and public relations.
3.1.3. Project management organization during DNPP project implementation
This period starts with the signature of the DNPP commercial contract completion, at the end of negotiation period, as shown in Figure 3.1 and ends with the completion of the DNPP commissioning and its acceptance (turnover to operation) which allows the utility starting commercial operation. This period can be described as project-oriented activities leading to the successful construction, commissioning and acceptance of the DNPP.
The DNPP Project Management Team (PMT), its organizational chart, obligations and responsibilities are determined by the strategy selected by the DNPP utility for project completion and the contractual negotiations with selected contractors/suppliers. Whether or not the utility is involved in the DNPP PMT, the control rights of the DNPP PMT should be kept in the utility’s management or head office departments. The purpose is to ensure the organization of a utility project management group that has functions and responsibilities similar to those described in the References [2] and [3], just as they would for a new NPP.
The DNPP PMT during the project implementation period is responsible for the DNPP project completion by scheduling, budget control, engineering, construction, erection, commissioning and turn over to operation. The specific roles and activities of the DNPP PMT are described in Section 7.
The annexes present some good practices and experiences of the Member States for the DNPP PMT organization and responsibilities during the project implementation period.
3.2. Description of the restarting process
The DNPP restarting process includes two periods: (A) pre-project, and (B) project implementation, each of them containing particular activities, which are described below. The restarting activities begin after the decision for the DNPP completion is adopted and are characterized by the following activity areas:
A. DNPP pre-project activities
(1) Detailed verification of the DNPP status
⎯ Technical verification of the existing assets, equipment, material, work already performed, history files, documentation, suspended contracts and approvals, permits and licenses.
⎯ Economic and financial evaluation of the existing assets and assessment for the future activities.
⎯ Evaluation of the remaining work for DNPP finalization, acquisition of materials and assessment of documentation to be issued and evaluation of potential suppliers.
⎯ Evaluation of the existing and available human resources for the project implementation.
⎯ Preparation of the DNPP Status Verification Report(s).
(2) Preparation for DNPP resumption
⎯ Finalization of the required studies (Environmental Impact Assessment, etc.) for the applicable licenses.
⎯ Public information, consultation and acceptance.
⎯ Assessment of the new standards and new regulatory requirements.
⎯ Specific analyses or studies to update the required data for the meteorological, seismically and hydraulically situation, including the climate change influences.
⎯ Definition of the mandatory design changes required by new regulations and technological improvements.
⎯ Establishment of the nuclear safety licensing bases and project licensing schedule as approved by the national nuclear safety regulatory body.
⎯ Performance of the detailed and logical schedule for DNPP completion.
⎯ Assessment of the local and international market for the identification of the potential suppliers for goods and services and verification of their qualification and capabilities.
⎯ DNPP site activities such as cleaning, documentation, non-conformities, repairs, maintenance, infrastructure upgrading, limited budget work, etc.
(3) Determination of the strategy for the DNPP completion
⎯ Selection of the contractual approach (turn-key, multi-packages, etc) and project management configuration.
⎯ Establishment of financial approach and financing plan (commercial loans, guaranteed loans, specific financing, etc.).
(4) Contracts for DNPP completion and financing
⎯ Preparation of Bid Invitation Specifications (BIS).
⎯ Selection of contractors/suppliers (bids evaluation, selection of the bids, negotiations).
⎯ Closing of the contract/contracts.
⎯ Selection of financial suppliers/sources.
⎯ Fulfilment of the precedent conditions for effectiveness of the commercial contracts and financing.
B. DNPP project implementation activities (5) Project management
⎯ Planning and scheduling.
⎯ Finance and budget control.
⎯ Public information and communication.
⎯ Management of all DNPP finalization activities.
(6) Project engineering
⎯ Basic and detailed design engineering.
⎯ Engineering for procurement.
⎯ Safety Analysis Reports and licensing application.
(7) Procurement and manufacturing of equipment and components
⎯ Equipment and components design.
⎯ Planning of manufacturing.
⎯ Production of equipment and components.
⎯ Inspection and control during manufacturing.
⎯ Reception, transportation, storage and maintenance/preservations.
(8) Plant construction, erection and installation
⎯ Civil works and mechanical erection.
⎯ Electrical and I&C installation.
⎯ Repairing, refurbishment, inspections and maintaining of equipments and systems.
⎯ Inspection and testing (pre-commissioning) of equipments and components.
⎯ Turn over to commissioning.
(9) Plant commissioning and acceptance
⎯ System commissioning tests.
⎯ Optimization of the plant system functions.
⎯ Verification of the operating procedures.
⎯ Familiarization of the operating personnel with the plant systems.
⎯ System and plant acceptance and turnover to operation.
The route map for the DNPP project completion is shown in Figure 3.2, which presents all above mentioned activities and also the corresponding management organizations involved.
FIG. 3.2 Route map for the DNPP restarting activities and involved managing organizations.
3.3. Management system
The completion of the DNPP project is a major undertaking and requires the implementation of an integrated management system directed to provide a single framework for the goals,
Decision for DNPP restarting
A. Pre-project activities
(1) Detailed verification of the DNPP status (2). Preparation for DNPP resumption
(3). Determination of strategy for the DNPP completion (4). Contracts for DNPP completion and financing
- DNPP Core Group
and - Departments of
Utility Head Office
- Utility
- Main Contractor - Project
Management Team
B. Project implementation activities
(5) Project management (6) Project engineering
(7) Procurement and manufacturing
(8) Plant construction, erection and installation (9) Plant commission and acceptance
Turnover to operation
Management
of activities
arrangements and processes of the organization. The goals include safety, health, environment, economic, communications, security, quality and others such as social responsibility.
Personnel, equipment and organizational culture as well as the documented policies and processes are integral parts of the management system. Requirements and guidance for integrated management systems are established in, for example, IAEA Safety Standards [9]
and [10] and other IAEA technical documents identified as References [2]–[6].
The main aims of an integrated management system are:
⎯ Bringing together in a coherent manner all the requirements for managing the organization and the project;
⎯ Describing the planned and systematic actions necessary to provide adequate confidence that all these requirements are satisfied; and
⎯ Ensuring that health, environmental, security, quality and economic requirements are not considered separately from safety requirements, to avoid the possibility of their potential negative impact on safety.
Safety is paramount within the management system, overriding all other demands. The management system identifies and integrates the requirements contained within the applicable codes, standards, statutory and regulatory requirements of the Member State as well as any requirements formally agreed with stakeholders.
The management system promotes and supports a strong safety culture by:
⎯ Assuring a common understanding of the key aspects of the safety culture within the organization;
⎯ Providing the means by which the organization supports individuals and teams to carry out their tasks safely and successfully, taking into account the interaction between individuals, technology and the organization;
⎯ Reinforcing a learning and questioning attitude at all levels of the organization; and
⎯ Providing the means by which the organization continually seeks to develop and improve its safety culture.
An announcement of the PMT highest management level should be issued immediately following signature at the DNPP completion contract to present the PMT organization chart, project manager, level of authority and responsibilities within the organization, basic information on the type of project organization chosen, budget codes, and preliminary communications and signature procedures inside PMT.
The implementation and control of project definition and the communication of decisions are continuous tasks during project execution, but are particularly important at the beginning of the PMT activities. As far as possible, front-end definition of all DNPP project management aspects may be achieved, even if corrections have to be made later. The interpretation of contractual terms into concrete project requirements usually involves a special effort by DNPP project management. Whatever is decided for the project organization should be established in writing and collected in an appropriate form, i.e. in manuals and procedures.
The role and characteristics of such project manuals and procedures are described in Reference [2].
The DNPP PMT project manual and procedures should describe the interaction with contractors, suppliers, regulatory bodies or any other participants in the project completion.
The turnover process to the DNPP utility operation team, including the owner’s or utility’s participation in the commissioning, should be defined, as well as the relationship and boundaries between the DNPP PMT and DNPP utility. This should include the DNPP utility information system about the status of the completion as carried out by the DNPP PMT and the control rights of the DNPP utility over the PMT’s activities and performances.
The practices and experiences of Member States for the DNPP PMT implemented during the DNPP pre-project and project implementation periods are presented in the annexes.
3.4. IAEA technical support for DNPP
The IAEA collects related information and supports the management of the DNPP projects by identifying the most common issues, transferring available experience and addressing specific problems and needs.
The IAEA may provide technical support services, described in Annex VI, which are tailored to the needs and requirements of the requesting organizations responsible for DNPP project completion. These services are based on international expertise and address areas such as:
⎯ Project management
⎯ Quality management
⎯ Safety culture
⎯ Peer reviews
⎯ Public information and communication
⎯ Technical support
⎯ Schedule and budget control
⎯ Risk analyses
⎯ Human resources and human performance improvement
⎯ Updating to technological and regulatory requirements
⎯ Design analyses/review
⎯ Environmental issues
⎯ Cost-benefit analyses
⎯ Instrumentation & control modernization
⎯ Safety systems and engineered safety features
⎯ Co-operation with regulatory body
The IAEA can also provide technical support for the DNPP owner or operator for several different issues such as assessing if upgrades are needed and if the technology is kept up-to- date, suggesting managerial approaches to use during the implementation of the DNPP and to make sure it operates safely and economically. The sort of support the IAEA cannot offer is where commercial decisions are concerned, as these do not fall under the IAEA scope.
The Member States can benefit from IAEA technical support in a number of ways, including making requests for an advisory or review mission through a national technical co-operation project. It is also desirable that the Member States and owner/operating organizations obtain advice from appropriate international organizations and commercial suppliers.
4. VERIFICATION OF BASIC CONDITIONS FOR DNPP WORK RESUMPTION 4.1. Technical conditions
The technical verification of the existing assets, equipment, material, work already performed and existing documentation was a task of the DNPP core group during the interruption and preservation period (delay phase). The results of this verification serve as input to the feasibility study for DNPP restarting and completion. After the decision to re-start the DNPP has been made it is useful to perform additional detailed technical verification, in order to obtain more precise information for the next periods of the DNPP project restarting.
4.1.1. Evaluation and assessment of the existing conditions
The current condition of resources already at DNPP site should be determined by detailed technical verifications in the following areas:
A. Documentation
⎯ Documentation (engineering and design packages) already completed and manufacturer’s documentation for equipments and components already supplied.
⎯ Records (history dockets) for all work already done, including all the non-conformity reports and site field changes or dispositions.
B. Physical status of the plant
⎯ Establishment/verification of the exact point where each building, component, equipment or system has stopped when the construction, erection, commissioning or maintenance were suspended.
⎯ Inventory and inspections of all existing buildings, components, equipments or systems and facilities for detailed technical assessments, including the preservation status and real condition, and assessment of the ageing effect.
C. Licensing
⎯ Status of licensing process, including required support documentation (Preliminary Analyses Safety Report, etc.).
⎯ Approvals, permits and licenses validity.
D. Contracts
⎯ Suspended commercial contracts with vendors, suppliers, site contractors, especially for the local construction and erection subcontractors.
E. Material control and warehouses
⎯ Management of the existing materials (material identification system, material traceability, storage/warehousing, preservation, material and spare parts inventory, quarantine of non-conforming material).
⎯ Warehouse evaluation and verification of the warehouse preservation.
The above-mentioned activities should be performed by the DNPP utility, under the management of the core group and with the specific support of the departments of the DNPP utility head office. The following are good practices based on the experience of the Member States that may be used.
⎯ Verification and assessment of the existing DNPP, in the areas mentioned, by an independent consultant of DNNP utility, with experience in the particular type of DNPP and management of NPP projects.
⎯ Engineering organization involved originally in the DNPP design activities may be used for these verification and assessment activities.
⎯ The verification of the existing buildings, components, equipments or systems and facilities should be based on the specific technical criteria and inspection program developed by the engineering organization involved in these activities. Examples of these technical criteria are the following:
⎯ Conformity with the original applicable engineering packages
⎯ Results of the preservation procedures applied during the plant delay period
⎯ Fulfilment of the new applicable codes and standards and establishment of the deviations and nonconformities, including quantitative and qualitative analyses.
⎯ The performance of the activities should be supported by a modern and complete record and information system which includes the construction, erection, commissioning and maintenance information, engineering packages and project documentation, commercial contracts and licensing information.
⎯ The results of these assessment and evaluation should be included in the specific technical reports (Status Verification Reports) and studies, which will be used by DNPP utility for furthers decisions.
⎯ Verification and assessment activities should be considered input data for the preparation and implementation of the DNPP technical restarting programme.
In the annexes good practices, identified issues and solutions successfully applied in the Member States are presented.
4.1.2. Evaluation and assessment of the required work for the DNPP completion
The amount of work remaining to be done for the DNPP completion should be accurately verified and assessed in the following areas:
A. Engineering
⎯ Verification of project safety design guides, design requirements and engineering design solutions, in the light of changes during the delay period into codes, guides, standards and regulatory requirements.
⎯ Establishment of the revised project Design Bases for engineering, licensing, construction and commissioning.
⎯ Assessment of the experience gained during construction of similar new NPP units.
⎯ Evaluation of the feedback from commissioning and operation of similar new NPP units.
⎯ Definition of design changes and engineering upgrades (possible to be implemented), as consequence of new regulatory requirements, operational assessment and technological developments.
⎯ Performance of the analyses or support studies for the climate change influences (in the period of delay and prediction for the future period), which may have an impact on parameters that may affect the DNPP operation (external air temperature, flow/level/temperature of cooling water, tornado, etc.).
⎯ Performance of analyses or studies for updating the required data for meteorological, seismic and hydraulically situation.
⎯ Evaluation of the engineering and design packages required to complete the DNPP project.
B. Planning and scheduling
⎯ Performance of detailed and logic schedule for advancing and completing the project, covering the following major elements: engineering, procurement, construction (including refurbishment), pre-service inspection, checking, and testing and commissioning.
⎯ Definition and submission for approval of the regulatory body of the project licensing schedule and required technical support documentation for the different phases of the project (engineering, procurement/acquisition, equipment and components manufacturing, construction, erection, commissioning and turn over to operation).
C. Licensing
⎯ Assessment of the IAEA Safety Standards (in their evolution and revision) in order to determine the impact on the licensing process, specific changes and improvements.
⎯ Identification of the impacts on design or construction work already performed due to the additional or new requirements from regulatory body.
⎯ Finalization of the Licensing Bases Document, to be submitted for approval by the regulatory body, which includes all the specific regulatory requirements for all project finalization phases (design, construction, erection, commissioning and turn over to operation).
⎯ Revision of the Preliminary Safety Analyses Report (PSAR) for DNPP finalization that must reflect all the changes imposed by new licensing requirements.
D. Acquisition, procurement and supply
⎯ Equipment obsolescence (especially on electrical and I&C), definition and evaluation of its impact on engineering, erection and commissioning.
⎯ Determination of existence on the market of original equipment and services suppliers or identification of new sources for procurement and evaluation of their ability to provide support for the DNPP finalization.
⎯ Determination of additional equipment and services to be ordered for the project completion.
E. Construction, erection and commissioning
⎯ Assessment of the local and international market for the construction and erection organizations potentially available and qualified to perform the balance of the work (civil, mechanical, electrical, I&C, commissioning, etc.) required for DNPP finalization.
⎯ Evaluation of the balance of the work to be performed for the DNPP completion for each discipline (civil, mechanical, electrical, I&C, commissioning, etc.) calculated in manhours.
⎯ Assessment of pending non-conformance reports issued during manufacturing
⎯ Site acceptance test before operation of systems F. Communication and public information
⎯ Performance of the Environmental Impact Assessment (EIA) study and all technical support documentation for the public consultation and ESPOO convention consultation, through the minister of environment.
⎯ Evaluation of the required actions for public information during project implementation period, including public information centre on the DNPP site.
G. DNPP site infrastructure
⎯ Assessment of the new site office buildings for PMT organization (if required) and evaluation of the refurbishing of the existing site offices and infrastructure on the DNPP site.
⎯ Evaluation of the additional buildings required for accommodation (town site) of the DNPP utility, PMT and contractors personnel.
H. Human resources
⎯ Evaluation of the human resources training requirements for the engineering, project management, construction, erection, commissioning and commercial operation of the DNPP.
⎯ Assessment of the required training facilities (training centre, laboratories, welding school, full scope simulator, etc) and services (training in similar NPP or in the “reference plant”, etc.).
I. Nuclear fuel cycle, radioactive waste management and decommissioning
⎯ Establishment of nuclear fuel supply plan and financial evaluation of all required specific actions.
⎯ Preparation of the radioactive waste management program (including the spent fuel management), during the normal plant operation, for the entire life time of DNPP.
⎯ Assessment of the final disposal and radioactive waste management plan (including spent fuel disposal) and legal provision for the DNPP utility financial contribution.
The above-mentioned activities should be performed by the DNPP utility staff, under the management of the core group and with the specific support of the departments of the DNPP utility head office. The following are good practices and experience of the Member States that may be used for the performance of the above-mentioned activities:
⎯ Verification and assessment of the required work for the DNPP finalization, in the areas mentioned, by an independent consultant of DNNP utility, with experience in the particular type of DNPP and management of NPP projects.
⎯ The success of the above mentioned activities is very dependent on the relationships and cooperation with the different potential participants to the DNPP project completion.
⎯ Relationships of the DNPP utility and its consultants with the regulatory body should be sincere and open, but formal. The following good practices and recommendations may be used:
•
Clear and unobstructed lines of communication should exist between the DNPP utility and the regulatory body.•
The regulatory body staff should have open and unrestricted access to the project information, databases and personnel.•
Official contacts between regulatory body and DNPP utility should take place through designated personnel.•
Regulatory body representatives should have easy access to the DNPP utility designated personnel and pertinent information.⎯ Long-term and co-operative relationship with vendors of nuclear technology and specialized architects-engineers may be very beneficial.
⎯ The DNPP utility team involved in performance of these activities and their consultant should have access to the records of work already done (Feasibility Study, Status Verification Reports, Inspection Reports, approvals, licenses, permits, engineering, documentation, construction, erection, commissioning, maintenance, equipment, materials, spare parts, suspended contracts, etc.).
⎯ If there is a similar NPP unit/plant in construction, commissioning or operation this may be used as a “reference project” for the DNPP.
⎯ The Licensing Bases Document should take into account the actual physical status of the DNPP and the real possibilities to implement specific changes imposed by the new licensing requirements.
⎯ The impact of new requirements, including codes and standards, would be better defined if some additional safety studies and clarification of the requirements are performed. The proposed solutions should be presented to the regulatory body.
⎯ The assessment and evaluation of the new requirements should be concluded into a design changes list applicable for the DNPP completion, subject to regulatory body approval.
⎯ The design changes lists should be required before the definition of the balance of engineering documentation developed for the DNPP project completion.
⎯ Equipment and components suppliers’ assessment and evaluation should start with the suppliers of the existing equipment and materials for which the contracts were suspended during DNPP delay period.
⎯ Assessment and evaluation of the services suppliers, especially for the construction, erection and installation activities, may start with the contractors that performed the existing work in the DNPP.
⎯ DNPP utility may establish a co-operative "experience programme" with other DNPP utilities, for the purpose of exchanging information and learning from experience of others.
Good practices and solutions in this area are presented in the annexes.
4.2. Economic and financial conditions
The evaluation of the economic and financial conditions is mainly referring to the determination of the DNPP project budget for completion and the required financial plan.
These activities should be performed and finalized in order to create the basement for the establishment of the overall and specific strategies for DNPP completion.
4.2.1. Project budget
The evaluation of all capital expenditure required to complete the DNPP project is typically part of the feasibility study. After the decision to restart the DNPP has been adopted it is recommended to do additional detailed economic assessment and verification, mainly for the project completion capital expenditure (project budget). All the indicated capital/investment cost components should be carefully assessed and evaluated. The capital cost breakdown structure is dependent of contract approach and project management and varies from country to country. For example, in some countries the initial nuclear fuel load and other special material (e.g. initial load of heavy water for PHWR) are included in the capital cost. The information and recommendations included in the Reference [16] may be used for the DNPP project budget assessment and evaluations.
These assessment and verification should be based on the detailed reports that described the results of technical verification activities, mentioned above in paragraph 4.1. These types of activities are not so much different from similar cost assessments for a new NPP. The differences, specific for DNPP, are identified in the following areas, for which particular economical (cost) evaluations may be performed:
A. Engineering
⎯ Incorporation in the engineering packages of the design changes due to new regulatory requirements, changes in applicable codes/guides/standards, equipment obsolescence, operational assessment and technological development.
⎯ Producing the additional safety design studies and licensing technical support packages required by the new regulatory requirements, including project Design Bases, Licensing Bases Document, Preliminary Safety Analyses Report and Licensing Schedule.
⎯ Performance of the additional engineering work (environmental impact assessment study, climate change influences, inspection of work already performed, additional tests and inspection of equipment and components after refurbishment, etc.).
⎯ Finalization of the engineering and documentation packages as required for the DNPP completion.
B. Acquisition, procurement and supply
⎯ Old supplier commercial contracts negotiation, including the warranties and guaranties for existing equipment and materials.
⎯ Replacements of equipment or materials defined as obsolete or undesirable for further use in operation.
⎯ Acquisition of new components due to the missing documentation and quality management records.
⎯ Materials, tools and instruments defined for the equipment/systems refurbishment and additional testing program.
⎯ New equipment based on the modern and up-to-date technologies.
⎯ Nuclear fuel required for DNPP commissioning (first criticality) and other nuclear special materials (heavy water, chemicals, etc.).
C. Construction, erection and commissioning
⎯ Specific verification of preservation, inspections, retesting of the existing building, structures, equipment and systems.
⎯ Additional testing that should be performed early enough in the program to take corrective action if required.
⎯ Implementation of the refurbishment program on identified equipment, including manpower for specific checking and testing.
⎯ Implementation of modern construction methods (modularization, open-top, etc.).
D. Project management
⎯ Additional manpower required on DNPP site to manage the project completion (site engineering, construction, erection, commissioning, procurement, material management, planning and scheduling, financial and administration).
⎯ Implementation of modern tools (software and hardware) for the management of the specific areas of DNPP (electronic document management system, scheduling, procurement and material control, 3D CAD, etc.).
E. Training of human resources in the specific area for DNPP (engineering, project management, inspection, testing, etc.).
F. Insurance, including — when available — the Construction All Risk (CAR) insurance for construction and erection period and the Nuclear All Risk (NAR) insurance applicable starting with the first criticality of the nuclear reactor.
G. Administrative and social costs, including the site infrastructure, refurbishing of the existing site office buildings and town site for accommodation of the owner and contractors personnel.
The above-mentioned activities should be performed by the DNPP utility, under the management of the core group and with the support of the departments of the DNPP utility head office. The following are the good practices based on the experience of the Member States which may be used for the performance of the above-mentioned activities:
⎯ Cost evaluations and assessment in the mentioned areas specific to the DNPP completion may be performed using an independent financial consultant of DNNP utility, with experience in the particular type of DNPP and management of the NPP projects.
⎯ Evaluation of the costs and assessment for the above-mentioned area should be based on the financial evaluation included in the approved DNPP Feasibility Study and also on the inputs received from the similar DNPP projects, new NPP and information from the potential suppliers of goods and services for project finalization.
⎯ Complete scope of work definition as well as a realistic project schedule is required for the preparation of the DNPP finalization project budget.
⎯ The DNPP project budget should contain an evaluated and assessed contingency amount, which should cover undefined work and risk of possible major changes. The amount of contingency for a DNPP project depends on the extent different factors (example: physical status of the DNPP, inspections and reviews required to be done prior to the implementation of the commercial contracts for finalization, defined risks for the DNPP finalization, etc.).
⎯ Due to the greater unknowns associated with DNPP project completion, the contingency should be increased to 10 to 12% of the DNPP overall budget, depending on the degree of scope of work definition. This recommendation is based on the contingency used for a new NPP unit, mentioned in Reference [2] and international experience (contingency for a new CANDU 6 NPP unit is approximately 8% applied to the overall project budget — see Annex IV).
⎯ As for the new NPP construction projects, it is recommended that the overall DNPP budget to be cash flow, in order to clearly identify the required resources (personnel and cash flow) for the DNPP project completion.
Good practices and solutions in the field of DNPP project budget evaluation are presented in the annexes of this document.
4.2.2. Financial plan
The availability of adequate and secure financial resources is probably one of the most crucial constraints affecting the completion of a DNPP project. In the context of competitiveness of total electricity generating costs, financing is a key issue to be addressed before the successful implementation of a DNPP project. Financing of nuclear power plants generally has been facilitated by the need for base load electricity at stable projected production costs,
competitiveness of the nuclear option, stable regulatory regime and indirect or direct government support.
Total financing arrangements for a DNPP project completion are influenced by the cost of capital and schedule. The financial credibility of the DNPP utility in front of the financial institutions plays a very important role in financial arrangements for DNPP project completion.
The financial plan includes the collection of relevant data (as a function of time) on program related factors. These comprise the total capital investment, the nuclear fuel cycle cost, and the establishment of debt/equity targets and the assessment of the potential financing sources.
There are no differences between the financial plan for a new NPP and a DNPP, except the required capital investment for DNPP completion. The good practices, recommendations and details for the NPP financial plan are presented in the References [2], [3], [6] and [19].
In some countries the role of the state is very relevant for the financing of the DNPP completion. This statement is referring not only to the state participation to the financing of DNPP completion but also to the financial facilities granted to the DNPP, like taxes discount for the imported equipment and materials, for documentation and engineering packages, etc.
These measures should have a positive impact on financing of the DNPP completion.
The financing agreements should be negotiated and finalized typically after the commercial contracts were negotiated and concluded. The parties in a financing agreement are the financing institution and the owner/utility of DNPP. The main suppliers/contractors of the DNPP completion can provide specific assistance to the owner in the process of obtaining and negotiating loans, in the best possible terms and conditions.
4.3. Human resources
The DNPP completion process, like a new NPP project, requires adequate competence of the NPP utility to manage such a complex project. The adequate human resources are the key factor to successful restart and completion of DNPP project. Effective measures to preserve human resources should be taken by the DNPP utility management. The duration of the delay period may have significant impact on the DNPP dedicated human resources (core group), with losses and ageing of qualified personnel.
After the adoption of the decision for DNPP completion the following specific actions, measures and good practices in the field of human resources should be implemented:
⎯ Evaluation and assessment of the level of competence of DNPP staff (core group) and utility head office staff dedicated to the project.
⎯ Development of a knowledge and information transfer process from the DNPP core group to the future PMT, in the pre-project period.
⎯ Recovery of former human resources and knowledge about DNPP, starting with the pre- project period.
⎯ Preparation and implementation of the specific training program performed by vendors and equipment suppliers in the adequate training facilities.
⎯ Implementation of the additional training and knowledge updating program, including the particular aspects of DNPP (preservation, verification, checking, rehabilitation, refurbishment, etc.).
⎯ Finalization of the recruitment/selection plans and put into action at the proper time, so the necessarily staff is in position in required numbers and quality.
